Gratuity Calculator India 2026 (new Labour Code rules)
Calculate gratuity in India for 2026: 15 days' wages per year of service, the 5-year and 1-year rules, the Labour Code's 50% wage rule and the ₹20 lakh cap.
Gratuity is tax-free for private employees up to ₹20 lakh in a lifetime and fully for government employees. Your employer may pay more than the legal minimum.
What it does
Gratuity is a lump sum an employer in India pays when an employee leaves after at least 5 years of continuous service, or after 1 year for fixed-term employees under the Code on Social Security, in force since 21 November 2025. For employers covered by the law it is 15 days' wages for each year of service: last monthly basic + DA × 15 ÷ 26 × years, where a part-year above 6 months counts as a full year. Under the Code, if allowances are more than half of the pay, the excess is added back to wages.
How to use it
- Type the last monthly basic salary + DA and, if you know it, the total monthly pay.
- Type the years and months of service and tick the boxes that apply.
- Read the gratuity, the years counted and the tax-free part.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much gratuity after 10 years and 7 months with ₹50,000?
7 months is more than 6, so 11 years count: ₹50,000 × 15 ÷ 26 × 11 = ₹3,17,308.
What does the 50% wage rule change?
With a basic of ₹30,000 in a total pay of ₹1,00,000, the Labour Code counts ₹50,000 as wages: after 5 years the gratuity is ₹1,44,231 instead of ₹86,538.
What if my employer is not covered by the Act?
A voluntary gratuity is usually worked out as 15 ÷ 30 of the average salary of the last 10 months per completed year: ₹2,50,000 for 10 years with ₹50,000.
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